When the funding rate drops to -0.1% or below, the group chat starts circulating all kinds of screenshots about stablecoin regulation and reserve audits. Honestly, every time I see something like this, I get a reflex to open a position just to go against the emotion—since the funding is so deep, going against the other side should be profitable.

But if I calm down and think about it, an extremely negative funding rate is itself a problem. It suggests the market is full of one-way bets—either people are extremely bearish or extremely greedy. Sometimes you think you’re picking up a bargain, but then you go in and find out you’re just picking up the knife. Once retail sentiment catches fire, it can smash through any logic.

My approach right now is: if the funding rate is too extreme, I’ll just step aside and won’t fight it head-on. After all, volatility will eventually revert to zero—there’s no need to be the one providing liquidity. I’ll occasionally move on-chain, but for now I’ll wait and see whether the depeg rumors can really be兑现, otherwise it’s just free money given away.

Anyway, I’d rather stand by with a cold eye and not join the excitement and become the counterparty. You never know who’s hiding liquidity, right? For now, that’s it.